When news originally broke that there would no longer be an Apple native version of YouTube in iOS 6, a first for the iconic platform, many thought it was merely some hard feelings between Apple and Google (TQ was on it). It turns out however that the move might have been a strategic one on Google’s part, as a standalone YouTube app would allow them to monetize videos viewed on mobile devices within the app itself. Under the current agreement with Apple, Google only earns on videos that are viewed within the web browser and not the app.
YouTube introduced skippable ads in late 2010. These types of ads, which play before videos represent 65 per cent of all ads total on the standard internet version of YouTube. The format has been extremely successful as users appreciate the opportunity to skip a Bounty ad before watching their Top 10 LeBron James plays.
Given that people are using mobile devices more than ever to access the internet and popular sites like YouTube; it makes too much sense for Google to not be pushing mobile advertising that is agreeable to both enterprises as well as users. The option to skip allows a happy medium which should prove to be successful.
Under current advertising agreements, TrueView, the company who runs ads on YouTube only pays for ads that are not skipped, ensuring that users are engaged by the ads that they pay for.
According to TechCrunch, YouTube has been testing skippable mobile ads for some time and will continue to collect data to track user engagement and advertising effectiveness. This information will then be relayed to advertising firms to ensure they are maximizing their dollars.
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